Cross-border beginner glossary: 40 terms in one line each (customs, HS code, FOB, DDP, VAT, ROAS…)
Answer
40 common beginner terms in cross-border trade, one line each, in four groups: sourcing and quoting (1–7), customs and tax (8–19), trade terms and documents (20–30), payments and promotion (31–40). These are plain introductions, not a substitute for tax law, product rules or contract terms; go to the relevant rule page for a real deal.
- Applies to
- First-time exporters and cross-border sellers, and anyone puzzled by a quote, shipping document or ads dashboard.
40 terms
| Term | In one line |
|---|---|
| 1. B2B | A business selling to another business. |
| 2. B2C | A business selling directly to individual consumers. |
| 3. SKU | A stock code that tells product variants (style, size) apart. |
| 4. MOQ | Minimum order quantity a supplier accepts. |
| 5. RFQ | Request for quotation: a document with spec, quantity and lead time, so quotes can be compared. |
| 6. Sample | A small quantity to check design, material and quality; it does not replace inspecting the full batch. |
| 7. Lead time | Agreed date for a delivery milestone; say whether it means ex-factory, shipped or delivered. |
| 8. HS code | The international product classification base; each country adds its own sub-codes. |
| 9. HTS | The US tariff schedule for US classification and duty rates; do not guess from a product name. |
| 10. Country of origin | Where goods originate under the applicable rules; not necessarily where they ship from. |
| 11. Declared value | The value declared to customs, set under the applicable valuation rules. |
| 12. Customs duty | Tax on imports or exports, based on classification, origin and the rules. |
| 13. VAT | Value-added tax on consumption or transactions under local rules; recovery depends on eligibility and records. |
| 14. GST | Goods and services tax in some countries, under local rules. |
| 15. De minimis threshold | De minimis: a value line below which a tax may not apply if conditions are met; not all charges are waived. |
| 16. IOSS | An EU VAT scheme for low-value distance sales of imports; it does not settle every import charge. |
| 17. Customs declaration | Submitting goods and transaction data to customs and completing formalities. |
| 18. Customs clearance | The process by which goods are released after customs checks and charges. |
| 19. Importer | The party that carries import obligations; who that is depends on local rules and the deal. |
| 20. Incoterms | ICC trade terms that split some costs, risks and duties of delivery between seller and buyer. |
| 21. FOB | A term for sea or inland-waterway transport where the key delivery point is loading on board at the named port of shipment. |
| 22. CIF | Seller pays freight and insurance to the destination port, but risk passes earlier, not on arrival. |
| 23. DDP | Seller delivers to the named destination and handles import clearance; must still follow local rules. |
| 24. Landed cost | Landed cost: goods, freight, taxes and fees added up; always state what is included. |
| 25. Waybill | The carrier's document recording a shipment. |
| 26. Commercial invoice | A document listing seller, buyer, goods, quantity and price. |
| 27. Packing list | A list of what is in each package, with quantity and weight. |
| 28. Declaration of conformity (DoC) | Declaration of conformity by the responsible party; not the same as third-party certification. |
| 29. Test report | Test results for a sample under a given method; check model and scope. |
| 30. Certification | Confirmation of conformity under a given scheme; scope depends on the rules and certificate. |
| 31. KYC | Know your customer: a provider's identity and risk checks. |
| 32. Two-step verification | An extra verification step in addition to the password; use multi-factor authentication where available. |
| 33. Settlement cycle | Settlement cycle: when a platform or payment provider pays out; not the same as money you can withdraw. |
| 34. Chargeback | Chargeback: a cardholder disputes a payment through the card issuer and may recover it. |
| 35. CPC | Cost per click: ad spend divided by clicks. |
| 36. CPM | Cost per thousand impressions: ad spend ÷ impressions × 1,000. |
| 37. CTR | Click-through rate: clicks ÷ impressions. |
| 38. Conversion rate | Conversions ÷ visits or clicks; always state the denominator. |
| 39. ROAS | Return on ad spend: attributed revenue ÷ ad spend; not net profit. |
| 40. GEO | Generative engine optimisation: making content easier for AI search to find, understand and cite; no guarantee. |
What you can do yourself
- When reading a quote, shipping document or ads dashboard, check unknown terms here first.
- For FOB, CIF, DDP and similar terms, write the Incoterms version and the named place in the contract.
- For money terms (duty, VAT, landed cost, ROAS), always state what is included and how it is calculated.
When to use a licensed professional
- When terms go into a contract or customs declaration, confirm with a customs broker or trade lawyer.
Check before you pay, and warning signs
- If someone hides behind jargon (for example "DDP all-in" without saying who is importer), ask for it in the contract.
Unknowns
- VAT, GST and de minimis rules differ by country; see each country page.
Contact us